EVANSVILLE, Ind. — Tri-State Alliance has continued with its usual activities in recent weeks, unfazed by Internal Revenue Service difficulties and ongoing criticism from local individuals and entities previously involved.

The LGBTQ advocacy group recently conducted its annual Mr. Heavensville fund-raising event, as well as a political candidate forum, a Halloween-themed youth group dance and vigils commemorating Transgender Day of Remembrance.

The organization lost its tax-exempt status in February, although this was not known publicly until the Courier & Press and others discovered it in September. Tri-State Alliance has appealed the IRS action and has said it expects its tax-exempt status to return.

According to the church, this means Unity Fellowship is receiving donations designated for TSA, maintaining custody and control of those funds and keeping documentation of receipts and disbursements.

Officials with TSA did not respond to Courier & Press requests for comment about the group’s IRS situation or recent activities. Wally Paynter remains Tri-State Alliance president, a role he has held for many years.

The group’s most recent available IRS form, for 2016, shows revenue of about $112,000 and expenses of nearly $97,000. The form states Paynter received no compensation. In several prior years, he received $12,000, documents show.

Paynter was an employee of the Vanderburgh County Health Department, as a disease intervention specialist, until he resigned in March.

Some former Tri-State Alliance board members have questioned the organization’s financial management, saying they were often unaware of how money and gifts were being used. They said Paynter seldom called board meetings.

Yvon Lauren and the Rev. Paul Mefford of Evansville have publicly called for Paynter to step down as Tri-State Alliance president. They made those comments to the Evansville City Council at a recent council meeting. Lauren was a founder of the organization and Mefford a board member.

The Rev. Kevin Fleming of First Presbyterian Church of Evansville said his church supports LGBTQ-friendly causes but no longer donates to Tri-State Alliance. He said First Presbyterian ended its support “awhile back” but he couldn’t recall exactly when.

“I really can’t comment on why we did that,” Fleming said. “But it was felt that we were not getting the kind of information we needed from the organization.”

Evansville Department of Metropolitan Development Director Kelley Coures, a Tri-State Alliance board member for several years whose role focused on community education, severed his ties with TSA earlier this year because of concerns surrounding its leadership.

Kirt Ethridge, who was a member of the Tri-State Alliance Transgender Support Group for one year, also is no longer involved.

“I discovered quickly that the TSA was not run with any kind of transparency,” Ethridge said. “People within my trans family complained multiple times that there were no regular board meetings. Trans Group attempted to plan fundraising functions, but they were often overtaken by the wants of TSA higher-ups, or they were shot down because many people in Trans Group did not trust the TSA in general with any money raised.

“The feeling was that if we raised money, it would go into the general fund, and then could be misappropriated; we were deeply worried that it might be spent on items that did not pertain to the local transgender community’s needs,” Ethridge said.

As long ago as 1997, a then-treasurer of the Tri-State Alliance board, Anthony Buccilli Jr., and another former board member, Duane Wells, resigned from the board amid concern about the organization's financial transparency, according to correspondence from the time obtained by the Courier & Press.

Paynter, in his most recent public comments, said all TSA funds are being used to support the organization's mission.

AIDS Resource Group has 'Graceful Giving'

Tri-State Alliance again this year is sponsoring a holiday season donation effort for individuals and families impacted by HIV/AIDS, but it is not to be confused with a different donation drive conducted by AIDS Resource Group of Evansville.

The ARG's program is known as Graceful Giving. It has a goal this year of assisting 240 people in 127 area households.

ARG has no formal affiliation with Tri-State Alliance.

Officials with ARG said they have seldom worked with Tri-State Alliance on community programs, except to provide HIV testing, when asked, at a few TSA-sponsored events.

If confusion arises, “we just clarify that they (Tri-State Alliance) are a separate group,” said ARG executive director Stacey Easley. “We have been on our own since 1986.”

Donations to Graceful Giving will help families meet various holiday season needs for food and gifts, ARG officials said.

ARG is still short of its funding need for this year. Information on how to contribute or get involved with Graceful Giving is on ARG's website. Fleming said First Presbyterian Church is supporting their effort.

The Graceful Giving program started about eight years ago.

“We pride ourselves in being 100 percent transparent,” ARG Board President Malcolm Cook said. “We are heavily audited and publish all of our financial information. All of our money is earmarked as to where it’s going and what’s going on with it. If the needs is surpassed, it carries over to next year. We are happy to pass on information to any donor.”